Venture Global priced its IPO at $25 per share. (Source: T. Schneider/Shutterstock.com)
Venture Global, which operates two U.S. LNG export plants to date, priced its 70-million-share IPO at $25 after markets closed Jan. 23, raising $1.75 billion, the company reported.
Shares were trading at $24.27 each at 2:15 p.m. CST, about 3% below the company's pre-IPO sale price, after opening at $24.05 and jumping to $25.50 earlier on Jan. 24.
Shares began trading on the New York Stock Exchange under the ticker symbol "VG."
A range of between $23 and $27 a share had been anticipated in an updated filing Jan. 22 with the Securities & Exchange Commission (SEC).
The range was reduced from the initial estimate earlier this month of between $40 per share and $46 per share and to offer 50 million shares. Reuters reported that potential buyers balked at the value that gave the enterprise: $110 billion.
The revised valuation is about $65 billion.
An overallotment permits sale of up to 10.5 million more of the Class A shares within 30 days, up from the 7 million that had been planned.
Loading resumes
The Arlington, Virginia-based LNG provider began loading LNG tankers at its newest plant—Plaquemines on the Mississippi River south of New Orleans—in late December. Output in mid-January was 940 MMcf/d, according to J.P. Morgan Securities.
Its first plant, Calcasieu Pass in southwestern Louisiana, exported about 1.5 Bcf/d in mid-January.
The two plants’ production was part of the 14.75 Bcf/d of LNG shipped from U.S. LNG operators’ docks that week.
At press time, the BW Lilac was moored at the Plaquemines plant, according to VesselFinder.com.
Umm Chugwailina departed the dock Jan. 23 with a load heading for Montoir, France. It had been moored at the plant since Jan. 18, until the Port of New Orleans reopened Jan. 23 due to icy conditions along the U.S. Gulf Coast from winter storm Enzo.
98% voting power
Venture Global Partners II, which is controlled by the LNG operator’s cofounders—energy banker Michael Sabel and attorney Robert Pender—has 98% of voting power post-offering, according to the SEC filing.
Sabel and Pender control Venture Global’s Class B shares.
PIMCO (Pacific Investment Management Co.) owns 93.1% of the company’s Class A shares. Its post-offering voting power is expected to be 1.8%.
Class A shares will have one vote each, while Class B shares will have 10 votes each, according to the S-1.
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